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Outsourcing White Papers

Optimal Price Design for Variable Capacity Outsourcing Contracts

Overview This paper characterizes and solves the price design problem [PDP] for variable capacity IT/BP outsourcing contracts within a descriptive multi-attribute utility theory framework from the point of view of the bid team, i.e. they know costs and must negotiate prices. The paper shows that the price design problem, i.e. the general problem of choosing a price structure to optimize the joint utility function of the Provider and of the Client for arbitrary cost functions, can be formulated exactly as a stochastic program.

Further White Paper Details
Publisher	IBM	File Format	PDF, requires Acrobat Rdr 5
Date Published	December 2004	Downloads	65
Format	White Papers
Topics	Outsourcing, Cost Control - Risk Mgmt.

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